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6.1. B. - Page 151 <br /> { � L <br /> � <br /> � Caporicca ��: L;ir,o», Inr. <br /> �i Subsi�{r�rry� uf .�fa�runlll.P <br /> � C.'cr <br /> REPORT �i�d IIVTERIVA� CONTR�JL OVBI� FINANCIAL REP�RTING <br /> .4ND dN COMPLIANCE ANI� QTH�Ii MATTEi�S BASED C7N AN AUDIT OF FINAI'+dCIAL <br /> STA`�'�MENTS PERFORMED IN ACCORDAI�CE WTTH <br /> GOVERNlV1ETJTAUDiTING STAIVDARDS <br /> T� the Hanc�rable ��la}'�I a�1d i\�Iembers of City Council <br /> af the Cit�' ot Red���ooci City <br /> Reci��-ood Cit��, Califc�i <br /> ��Ve have audited the fitaancial stat�n7eilEs �t tl�e g�v�r�7nlental activities, t�1� ���isi�less-ky}�e activities, each <br /> major fuild, anc� tfle �ggregate ret�lai�ziti� Fu�1d i�tforination �f Cit}� of Red���ood City (City) 7s of and for tile <br /> year e�lcied June 30, 2011, sv�lich collectivel}' cainpris� t11� City's basic fin�ncia[ staten��nks ai�t� hhve issuecl <br /> our a�e��ort therec�n dated DecelnL�e�� 7, 2[)11. lhl� concl4icted �tu� auc�it ii7 accorciaElcc ��-ith audititlg str�nc�a�•ds <br /> genez��lly acce}�ted in the U�lited St�tes anc the st1n�{arc�s a}�plicab�� to fin��ncial auc�its contain�t� in <br /> Gaa�c°rrai�re�it Arrc�itili� StrrFrctrarr�ti, iss��ed bt� tll� Comptraller G��Zeral af the United States. <br /> Internal Cantrol Qver Financial ReUOrtin� <br /> In pla�uling anc� ��erfo�•nli�tg �tir auclit, r�re�consicfered t�1e City's interna] cantrol over financial repor�tii�g ��s <br /> a l�asis for desig�lii�g otu' aur{it �»'oceciures for the purpose of expressi�tg c�ur opinion on tl�e fiilaelci�l <br /> state�nents, but not for E11� ��tQrpose ot ex��i•essing ail opi�lion on th� effectiveness of tfle Cit}'`s iilteril�l <br /> cont��oi aver fiiiancia[ r��orEin�. Accordingly-, �ve do nat ex��rass aw� opinio�l oi1 tfle eff�cfiveness of tll� <br /> Ci�ds i��teri7�1 co�lta•ol ov�r fint�ncia[ reporting. <br /> f1 �ic�freietici� i�r irrtc��tra1 cv�rf��oi exists �v1�e11 the d�s'r�n c��• operatic�n of a conti daes not allos�� managemenk <br /> ai� e���}�I�y�es, i�1 klze narmal couc�se ot ��erfoi°iiliiag th�ir assi��led E�.ii�ctioils, ko prevenk, or det�ck and co� <br /> �z�isstatements or� a timel�� L�asis. A 1rrr�ter�rc7! �e�eaktress is a deficienc}�, or a caml�i�latia�l ot ��leficiencies, ii1 <br /> interalal cor7trol such Elti�t �lzere is a re�tsc�na6le passibility Ehat a m�te��ial itaissEafeinent of the entity's <br /> fii�aneial staterz�enEs �vill not be preventec�, c�r d�tected and cc�rrectec[ oi� a timGly basis. <br /> C�ui• co�lsider•at'roel e�f i�lter���l co�ttrc�l aver fi�lancial r�po��ting tivas fe�r the limite�� }��r1'E�os� desc�•il?ed ii1 tile <br /> fii°st parTi�r�ph c�F this section anc� `���s not desi�ned to identify all c�eficiencics in I[lt�l'17�I contrc3l �v�r <br /> fiila»cial i�e���rtie��; tllat mi�]lt ��e c�efici�nri�s, s�gnifi�ant cieficieilcies, �t� materi�l �r�eak�lesses. b1�e did �ZOt <br /> iclentif�� aEl�r deficie�uies i�z internal control over tii7�i1cial i'epca�•ting k1Bat �>>e co�lsid�r to l?e mate►'ia[ <br /> ���eak�lesses, as defiri�cl �bove. Hawever, iti�e ic�enkified o��� deficieizc}� i�� internal co�7h over financial <br /> r°eparti�l�;, descl in the accoii�panyitlg selteclule of fii�din�s ��nc� qttes�io�lec� ec�sts, as itein FS 2011-Q7, <br /> t1�at ti��e coilsider to b� a significar7t defici�ncy in internal epnt��al over financial reporting. t� signiticant <br /> deficaeitc�� is a deficienc}�, c�r a cpmEiinaHo�1 af deficiencies, i�l inker�111 control that is less sever� than �� <br /> materi�l ���eakness, ���t i��zporta�lt eno�igh to n�erit attentian b�� those cf��r�ec� �o�itE1 �over�lanc� , <br /> �- .,.. <br /> 125 <br />